This paper is to analyze the socioeconomic impact of microfinance on rural poverty alleviation. For this purpose, we have analyzed the socioeconomic impact of Swarna Jayanti Gram Swarojgar Yojana on poverty alleviation in Handia block of District Allahabad in Uttar Pradesh. It explains concepts and measures of poverty and provides a brief review of literature on Indian planning experience with poverty reduction. This also tries to explain the basic difference between Micro Credit and Micro

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... ce. It presents a comparative picture for India and Uttar Pradesh on the basis of some income and non-income indicators of poverty.